Dow Now Expects Greater-Than-Projected Merger Savings

ByJohn S. McClenahen Its merger with Union Carbide Corp. now complete, $28.4 billion Dow Chemical Co. says "cost synergies" are likely to be more than the $500 million previously projected. Dow expects to announce its new estimates within the next few months, which probably means by September. In the meantime, Michael D. Parker, Dow's president and CEO, says, "Savings will begin immediately and will be fully realized within two years." Like several other major U.S. manufacturers, Dow is now touting itself as a "solutions" company. In Parker's words, Dow is a "solutions-oriented science and technology company" servicing, among others, the global food, transportation, health and medicine, personal and home care, and building and construction markets. Dow received approval for the merger from the U.S. Federal Trade Commission on Feb. 5 and the deal closed on Feb. 6. Union Carbide is now a wholly owned subsidiary of Dow.